NetEase has denied rumors about plans to divest its overseas assets

Rumors have been circulating for some time that the Chinese company NetEase has decided to stop investing in overseas teams. The layoff of Marvel Rivals developers in the USA has only fueled them. However, NetEase itself denies such intentions.

Marvel Rivals

How it all began

A month ago, Chinese media reported that NetEase had allegedly laid off almost all employees of its strategic investment department—more than a hundred people. The reason for the layoffs was the department's significant losses, which caused serious dissatisfaction among NetEase's top management.

In their publications, the media reminded that this step followed a reduction in NetEase's overseas presence. In particular, in August 2024, Bloomberg reported on NetEase's plans to close its Japanese Ouka Studios, and later NetEase conducted layoffs in the Canadian studio SkyBox Labs and ceased operations with Worlds Untold and Jar of Sparks. Against this backdrop, there were suggestions that NetEase had revised its investment strategy, shifting its focus from overseas studios to studios in China.

Additionally, last week, the founder of the venture company F4 Fund, David Kaye, wrote on LinkedIn a post dedicated to the results of the D.I.C.E. Summit 2025. In it, Kaye mentioned that a large Chinese company had "gotten rid of all investments" outside China.

Today, the portal VentureBeat released a piece pointing out that Kaye's post was specifically about NetEase. The journalists, citing sources, added that NetEase CEO William Ding had "lost confidence" in costly overseas studios due to the success of Chinese hits like Black Myth: Wukong. The portal does not rule out that the company may sell its overseas assets in the future.

NetEase's Reaction

In a statement to VentureBeat, NetEase representatives confirmed that the company had recently ended partnerships with several overseas teams, but overall its investment strategy remains unchanged.

"This decision was made after assessing the business [of the teams] and was not influenced by other factors. And this is just a small part of our portfolio of overseas studios. Our other studios in North America, the UK, Spain, and Japan continue to work on their current projects," said representatives from NetEase.

NetEase representatives reminded that in 2022 the company began an active expansion into the international market. It is not planning to abandon its plans now—despite the escalated tensions between the USA and China over the imposition of tariffs.

Note that NetEase owns shares in many major gaming companies worldwide. For example, its portfolio includes shares of Devolver Digital, Bungie, Behaviour Interactive, Kepler Interactive, and several dozen other teams.